Please 1. Consolidated Salt Company sells table salt to both retail grocerychains and commercial users (e.g., bakeries, snack food makers,etc.). The demand function for each of these markets is:Retail grocery chains : P1 = 180 – 8Q1Commercial users P2 = 100 – 4Q2where P1 and P2 are the prices charged and Q1 and Q2 are thequantities sold in the respective markets. Consolidated's total costfunction (which includes a "normal" return to the owners) for salt is:TC = 50 + 20(Q1 + Q2)(a) Determine Consolidated' s total profit function.(b) Assuming that Consolidated is effectively able to Ichargedifferent prices in the two markets, what are Ithe profit-maximizingprice and output levels for the product in the two markets? What isConsolidated' s total profit under this condition?(c) Assuming that Consolidated is required to charge the same pricein each market, what are the profit maximizing price and outputlevels? What is Consolidated' s total profit under this condition?

GIVEN THAT: P1=180-8Q1 P2=100-4Q2 TOTAL COST FUNCTION=TC=50+20(Q1+Q2)

(a) Determine Consolidated' s total profit function. (b) Assuming that Consolidated is effectively able to Icharge different prices in the two markets, what are Ithe profit-maximizin price and output levels for the product in the two markets? What is Consolidated' s total profit under this condition? (c) Assuming that Consolidated is required to charge the same pric in each market, what are the profit maximizing price and output levels? What is Consolidated' s total profit under this condition?

(a) Determine Consolidated' s total profit function. (b) Assuming that Consolidated is effectively able to Icharge different prices in the two markets, what are Ithe profit-maximizin price and output levels for the product in the two markets? What is Consolidated' s total profit under this condition? (c) Assuming that Consolidated is required to charge the same pric in each market, what are the profit maximizing price and output levels? What is Consolidated' s total profit under this condition?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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